LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  February 15, 1997
         
         
      TO: Honorable Kim Brimer, Chair            IN RE:  House Bill No. 384
          Committee on Business & Industry                              By: Pitts
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB384 ( Relating 
to the disclosure in a contract for the transfer of vacant land 
of certain information, including information concerning the 
imposition of additional taxes on the land.) this office has 
detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB384-As Introduced
         

No fiscal implication to the State is anticipated.
         

         
 
Similar annual fiscal implications This bill would amend the 
Property Code to require contracts for the sale of vacant land 
to include statutory language giving the buyer notice of the 
possibility of a property tax penalty (rollback tax) for changing 
the use of land qualified for productivity appraisal.

The 
Tax Code currently provides for an additional tax penalty (rollback 
tax) if the use of qualified open-space land changes.  The penalty 
is equal to the difference between the taxes the owner paid 
on the land and the taxes the owner would have paid had the 
land been taxed on its market value for the five years preceding 
the year in which the change of use occurred, plus interest. 
 The rollback tax is the liability of the person who changes 
the use.

          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,TH ,BR